TOPICAL ESSAY Oracle Corporation Backorders in Release 11i

Author: Creation Date: Last Updated: Version:

Michael Cummings September 21, 2001 October 12, 2001 1

Copyright (C) 2000 Oracle Corporation All Rights Reserved

Document Control
Change Record

Date 21-Sept-01

Author Michael Cummings

Version 1

Change Reference No previous document

Reviewers

Name Vidyesh Mishra

Position Senior Development Manager.

Distribution

Copy No. 1 2 3 4

Name

Location

Backorders in Release 11i BackOrders11i.doc (v. 1 )

Document Control

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Contents

Document Control ..................................................................................................................... ii Introduction: Backorders in 11i.2..............................................................................................1 Release Statuses .........................................................................................................................2 Backorder at Pick Release..........................................................................................................6 Backorder at Ship Confirmation.................................................................................................7 Transaction Flow for Backorders ...............................................................................................9 Scenario 1: Shortage at Detailing .............................................................................................10 Scenario 2: Shortage Reported at Pick Confirm.......................................................................12 Backorders and Cycle Counting..............................................................................................14 Backorders and Over picking ...................................................................................................16

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Introduction: Backorders in 11i.5.2

The purpose of this document is to describe the functional flow of the Backorder process in release 11i.5.2 Shipping Execution. The Backorder status of the Delivery line was introduced with the offering of the WMS Inventory Cross Docking functionality in Release 11i. The primary reasons behind this feature was to: 1) provide Order Management with better visibility to the status of a shipment line, and, 2) provide cross docking capability within the WMS system against backordered delivery details upon receiving new material. When Cross Dock was integrated into the Shipping product, the system gained new RELEASED_STATUS values, including Backordered status. Statuses of, Not Ready for Release, Ready to Release, Released (to WMS), Backordered, Staged and Shipped are visible at the line level. The development of the cross docking solution and the addition of the backordered status provides the benefit of having all the backorder logic inone place (Ship Confirm) instead having the code in two places, Ship Confirm for completely backordering a delivery, and in the OM interface for partially shipped lines. Moving the all backorder logic to ship confirm will provide quick turnaround on pick releasing partially Backordered lines as well as lines in completely backordered deliveries. Once the backordered delivery lines are staged, a user can reopen a confirmed deliver to include backordered lines before setting the delivery to intransit. In addition, other source systems with backordering requirements can make a generic call to the backorder API.

Backorders in Release 11i BackOrders11i.doc (v. 1 )

Introduction: Backorders in 11i.5.2

Release Statuses

The following table depicts the release statuses supported in 11i.5.2 RElEASE_STATUS N R S B Y X D C Description Not Ready for Release Ready for Release Submitted to Warehouse Backordered Staged Not Applicable Cancelled Shipped

The user will not see the data base values of N,R,S,B,Y,X C but will have visibility to the description in the Shipping Transaction Form in the Picked Status column when viewing a line. The statuses will also be visible in Order Management through the action button, additional information, deliveries tab. The following are the status descriptions and an example of when it would be seen on the delivery line. Not Ready for Release This status occurs when a delivery line is manually imported into Shipping Execution using the Import Delivery Line program prior to the line reaching the shipping workflow in OM. Ready for Release This status occurs when an order line has reached the Shipping Workflow activity in Order Management meaning the line has been booked, scheduled and imported into Shipping Execution. Submitted to Warehouse. This status is displayed when Pick Release is run. The Pick Release process creates a Move Order Header & Mover Order Line in Inventory. This is a common status for users that perform a two-step pick release process. This status indicates that inventory allocation has occurred however pick conformation has not yet taken place.

Backorders in Release 11i BackOrders11i.doc (v. 1 )

Release Statuses

Backordered The status of Backorderd is assigned to a line under the following circumstances. 1) The Pick Release process attempted to allocate inventory to the line and all or a partial quantity of the item was not available. In this case the system automatically backorders the discrepant quantity. 2) At Ship confirm the user enters a shipped quantity for an item that is less than the original requested quantity. 3) The user Backorders and entire delivery. 4) The user records a missing quantity by transferring a reservation to cycle count.

Staged The line receives the status of staged once inventory has been allocated and pick confirmed. The allocation step and the pick confirmation step can be done manually or automatically based on business needs. This is determined by a set up step in Shipping Parameters. Shipped. The Shipped status indicated that the delivery that the line is assigned to has been set to intransit and that the OM and Inventory interfaces have run. Not Applicable The Not Applicable status applies to non-shippable order lines. An example would be lines that are invoiced but not physically shipped. Items such as service and warranty would have statuses of Not Applicable. Cancelled The cancelled status applies when the order line has been cancelled in OM.

Backorders in Release 11i BackOrders11i.doc (v. 1 )

Release Statuses

The following diagram depicts the delivery detail status flow.

Backorders in Release 11i BackOrders11i.doc (v. 1 )

Release Statuses

N Not Ready for Release

R Ready for Release

Confirm Delivery: unassign unreleased lines

Pick Release

S Submitted to Warehouse

B Backordered

Pick Confirm

Y Staged

X Not Applicable

split backordered qtys of picked lines; and unreserve, backorder,

split/unassign staged qtys, unassign lines w/o inv. controls

split/unassign staged items Confirm Delivery split/unassign backordered qtys of nonpickable lines

Re-open Delivery

Set Delivery In Transit

C Shipped

Inventory Interface inv_interfaced_flag = 'Y'

OM Interface oe_interfaced_flag = 'Y'

Backorders in Release 11i BackOrders11i.doc (v. 1 )

Release Statuses

Backorder at Pick Release

One way a delivery line detail can receive a picking status of Backordered is by AutoBackorder. When the system determines insufficient inventory exists at the time of inventory allocation, it automatically splits the line if partial quantities are released and changes the status to Backordered for the unreleased quantity. Picking Steps 1. Pick Release Creates Pick Wave Move Order Header. 2. Pick Release Creates Move Order Line. 3. Move Order Line is Allocated at Pick Release or at Subsequent Step. 4. Inventory updates Shipping with results of allocation If a shortage exists (the quantity requested is greater than the quantity allocated on the move order line) Shipping Performs the Auto Backorder Routine.

AutoBackorder Routine 1. Split delivery line The detailed quantity remains on the original line. The status of the original line is progressed (if the status was Submitted for Release, it becomes Released. If the status was Released it becomes Staged. If the status was Staged it becomes Shipped. The difference between the requested quantity and the detailed quantity is indicated on the second line (the new line resulting from the split). The status of the new line is Backorder. The new delivery line will have no value in its move order line reference field (a new move order line for this delivery line will be created when the delivery line is pick released).

2. Update the Move Order Line Shipping will call Inventory to change the requested quantity on the move order line. The new requested quantity should equal the allocated quantity.

Backorders in Release 11i BackOrders11i.doc (v. 1 )

Backorder at Pick Release

Backorder at Ship Confirmation

Backordering also happens at Ship Confirmation either by backordering the entire delivery, in which case all delivery lines that are associated with the delivery will receive a picking status of backordered. Or the user can enter a shipped quantity of less than the requested quantity to backorder a partial quantity of the items being shipped. Picking Steps 1. Pick Release Creates Pick Wave Move Order Header and Line(s) 2. Move Order Line is Detailed 3. Move Order Line is Pick Confirmed 4. Delivery is Backordered at Ship Confirmation 5. If status of Planned, keep LPN and Delivery assignment. Otherwise unpack if packed. . 6. Change line Status to Backordered.

WSH Update Shipping START

Qty detailed < Qty Requested?

No

WSH updated delivery detail status to Released, Staged or Shipped

Yes

WSH updates OM to change SO Line status to "Backordered"

WSH updates Move Order Line Qty to equal qty detailed & closes Move Order line

WSH changes delivery detail status to backorder

Figure 1.0: Backorder Flow

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Backorder at Ship Confirmation

In the Physical flow of the backorder process, material may or may not exist. In the case where the material does not exist, the backorder process is used to identify inventory discrepancies. For example the system allocates the complete requested quantity at Pick Release based on availability. When the picker physically accesses the picking location, the quantity available to pick is less than the quantity the system determined as available. The shipper enters the actual quantity available in the shipped quantity field. The result of the Ship Confirm action is as follows: The line is split into two lines. One line will indicate the entered quantity as shipped quantity and have a pick status of shipped and the other line will indicate the unshipped quantity with a status of Backordered. Another case is when the material being shipped is available and material is being backordered for specific business reasons. For example all available material has been allocated to a specific customer when you find out additional supply for other orders will be delayed. Another customer will have a down production line situation if some of the allocated material doesnt get to them right away. A decision could be made to ship a partial quantity to one customer and backorder enough quantity to accommodate the down line situation. At the ship confirmation step, the user enters a partial ship quantity for the material. At Ship Confirmation the line is split into two lines. One with a status of Shipped for the entered quantitys and one with a status of Backordered for the unshipped lines. The physical material for the backordered material systematically resides in the staging location. A manual sub-inventory transfer is required if the desired location of the backordered material is another location. Pick Release could be run again for the down line customer and the system will allocate the material that was previously allocated to the backordered lines to the down line customer.

Backorders in Release 11i BackOrders11i.doc (v. 1 )

Backorder at Ship Confirmation

Transaction Flow for Backorders

User selects action "Confirm" and presses button Go.

Can Deliveries be confirmed?

Show Errors

Ship Confirm dialog opens. User sets options and presses OK or Cancel

Unassign lines if their released_status are NOT IN ('Y')

Unassign lines with status 'X' or 'Y' if they do not have required inventory controls

Update Quantities

Split and unassign Staged Quantities: make a list of staged lines

call Backorder API for lines with backordered quantities > 0 in each delivery

Completey Backordered

For each delivery, what is its case?

Fully Staged

Error

Shipped

Delete its Legs

If no leg, autocreate Trip update Delivery's status to Confirmed If specified and trip autocreated, generate BOL number

generate Pack Slip number if specified, submit Report Set if specified and trip autocreated, close Pick up Stop,

if specified and trip autocreated, close Drop off Stop, if specified, autocreate deliveries for the list of staged lines

Backorders in Release 11i BackOrders11i.doc (v. 1 )

Transaction Flow for Backorders

Scenario 1: Shortage at Detailing

A Sales Order line for 10 units of item A is booked and released. Only 7 units exist in inventory. The order is allocated, pick confirmed and ship confirmed.
Post Detailing

During allocation, 7 units are found. INV updated shipping with the results of the detail. Auto backorder split the delivery line and called OM to split the sales order line. WSH then reduced the requested quantity on the move order line. The data after detailing appears as follows:

Sales Order Lines

Line 1 1.1 Line 100 101 Line 1000 Line 10000 Qty 7 3 SO Line 1 1.1 Req. Qty 10 7 MO Line 1000 Qty 7 3 MO Line 1000 Staged Qty 0 Status Released Backorder Subinventory

Delivery Lines

Move Order Lines

Detailed Qty 7 Qty 7 Delivered Qty 0 From Loc Stores To Loc Stage

Move Order Line Details (MMTT)

Pick Confirm The user pick confirms the 7 units. Because the move order line was changed at detailing, the move order line is closed at pick confirm even though all 10 units were not found. The data appears as follows

Sales Order Lines

Line 1 1.1 Line 100 101 Qty 7 3 SO Line 1 1.1 Qty 7 3 MO Line 1000 Staged Qty 7 0 Status Staged Backorder Subinventory Stage

Delivery Lines

Move Order Lines

Line 1000 Line 10000 Req. Qty 7 MO Line 1000 Detailed Qty 7 Qty 7 Complete Qty 7 From Loc Stores To Loc Stage

Move Order Line Details (MMTT)

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Ship Confirm The user now ship confirms the 7 units.

Sales Order Lines

Line 1 1.1 Line 100 101 Line 1000 Line 10000 Qty 7 3 SO Line 1 1.1 Req. Qty 7 MO Line 1000 Qty 7 3 MO Line 1000 Staged Qty Status Shipped Backorder Subinventory

Delivery Lines

Move Order Lines

Detailed Qty 7 Qty 7 Complete Qty 7 From Loc Stores To Loc Stage

Move Order Line Details (MMTT)

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Scenario 2: Shortage Reported at Pick Confirm

A Sales Order line for 10 units of item A is booked and released. 7 units are found during detailing but at pick confirmation the user reports a missing quantity of 1 and can only pick confirm 6 units for the order. The process flow appears as follows Post Detailing Allocation completes successfully and all 10 units are found.

Sales Order Lines

Line 1 Line 100 Line 1000 Qty 10 SO Line 1 Req. Qty 10 Qty 10 MO Line 1000 Staged Qty 0 Delivered Qty 0 Status Released Subinventory

Delivery Lines Move Order Lines

Detailed Qty 10

Move Order Line Details (MMTT)

Line 10000 MO Line 1000 Qty 10 From Loc Stores To Loc Stage

Pick Confirm The user was instructed to find 10 units but could only find 7. A missing quantity is reported, when the user asked the system to redetail the balance, the system could not find more quantity of the item (the results would be the same if the user had not prompted the system to find the balance). The data appears as follows:

Sales Order Lines

Line 1 1.1 Line 100 101 Qty 7 3 SO Line 1 1.1 Qty 7 3 MO Line 1000 Staged Qty 7 0 Status Staged Backorder Subinventory Stage

Delivery Lines

Move Order Lines

Line 1000 Line 10000 Req. Qty 10 7 MO Line 1000 Detailed Qty 10 7 Qty 10 7 Complete Qty 10 7 From Loc Stores To Loc Stage

Move Order Line Details (MMTT)

Ship Confirm The user now ship confirms the 7 units that was available to ship in the staging location. The data appears as follows:

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Sales Order Lines

Line 1 1.1 Line 100 101 Line 1000 Line 10000 Qty 7 3 SO Line 1 1.1 Req. Qty 7 MO Line 1000 Qty 7 3 MO Line 1000 Staged Qty Status Shipped Backorder Subinventory

Delivery Lines

Move Order Lines

Detailed Qty 7 Qty 7 Complete Qty 7 From Loc Stores To Loc Stage

Move Order Line Details (MMTT)

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Backorders and Cycle Counting

The ability to identify and remedy inventory discrepancies as part of the picking and shipping process has recently been made available through patch 1672188 & 1970002 for Shipping Execution. Prior to this addition, if the user identified a material shortage while picking and shipping delivery lines, his only option was to backorder the discrepant quantity and alert inventory control personnel to make an inventory adjustment for the material shortage. If this manual alert was not made, the enterprise ran the risk of having unavailable material allocated again at the next pick release process until someone synchronized the physical inventory with the system inventory. The cycle count action in the shipping transaction form provides a mechanism for the user to split the line, one line representing the actual shippable quantity and another line representing the quantity that is backordered. At the same time the reservation is transferred to cycle count so the inventory will not be available at the next pick release process. The process to send a reservation to cycle count and backorder lines that were released as a result of discrepant inventory is as follows. Within the Shipping Transaction Form: 1) Select a line with a pick status of staged.
2) Select Cycle Count from the action menu and click on go.

3) A window very similar to the Split Line window comes up. In the figure below the delivery 33276 has a delivery detail 57552 with an ordered quantity of 20.

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4)

If you enter a quantity less than 20 ( say 7 ), the delivery detail will split as 13 Staged, and 7 Backordered as shown in the figure below .

5) If you enter a quantity of 20, the delivery will get completely backordered. In both cases the reservation for the quantity that you see backordered, gets transferred to cycle count. This can be verified from the inventory Supply/Demand form. There are two other ways to transfer backordered quantities to cycle count. 1) There is a radio button titled Cycle Count All under the Ship Options in the Confirm Delivery dialog box. By selecting this at ship confirm, the reservations for all lines in the delivery will be transferred to cycle count and the entire delivery will be backordered. 2) In the unspecified quantities drop down box there is a Cycle Count selection. By choosing cycle count from here, any line that does not have a shipped quantity specified will be backordered and the reservation transferred to cycle count.

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Backorders and Over picking

After pick-confirm step, the Picked Quantity should always be greater or equal to the Requested Quantity. If not enough quantity was picked, the delivery line will be split at Pick Confirm. The delivery line will be updated to Staged with the Picked Quantity and a new backordered delivery line will be created. If a delivery line is fulfilled by the Picked Quantity and there is a Pending Quantity, a new delivery line Pending Over pick will be created. When either one of the Picked Quantity or the Pending Quantity is null the following rule is used to handle delivery lines: Backorder the delivery line if its Picked Quantity is null and the Requested Quantity is greater than zero. Delete the delivery line if its Requested Quantity is null and the Picked Quantity is greater than zero.

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